Answered step by step
Verified Expert Solution
Question
1 Approved Answer
E9-30. Interpreting Footnotes on Security Investments Snapchat reports the following information in its 2018 10-K report. The table below presents the changes in accumulated other
E9-30. Interpreting Footnotes on Security Investments Snapchat reports the following information in its 2018 10-K report. The table below presents the changes in accumulated other comprehensive income (loss) (AOCI) by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (Loss) by Component Marketable Securities Foreign Currency Translation $ thousands Total Balance at December 31, 2017 .... OCI before reclassifications .. Amounts reclassified from AOCI $(1,078) 710 $15,235 (11,720) $14,157 (11,010) 710 (11,720) (11,010) Net current period OCI... Balance at December 31, 2018 ... $ (368) $ 3,515 $ 3,147 Footnotes report the following information on Snapchats marketable debt securities. Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value $ thousands $ 279,950 $ $ $ 279,950 735,988 181,032 12 4 (175) (36) 735,825 181,000 Cash... Level 1 securities: U.S. government securities U.S. government agency securities . Level 2 securities: Corporate debt securities. Commercial paper Certificates of deposit Total .. 1 (18) 35,819 33,193 13,293 35,802 33,193 13,293 $1,279,275 $17 $(229) $1,279,063 a. Snapchats AOCI account includes unrealized gains and losses from two sources. What are those sources? b. Snapchat reported net loss for the year of $1,255,911 thousand. Determine comprehensive income for the year. c. During 2018, did the currencies in the countries where Snapchat's subsidiaries were headquartered weaken or strengthen? d. Snapchat uses Level 1 and Level 2 inputs to determine fair value for its marketable debt investments. Explain the difference between these two inputs. e. Consider the Level 1 securities, which relate to investments in U.S. government de securities. On average, has the market rate of interest for these securities increased or decreased since Snapchat bought these securities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started